Weekly Tax Gyan(w-05)

 1.    Reduction of time limit for verification of Income tax returns to 30 days.

The time limit for verification of income tax returns has been reduced to 30 days from 120 days, effective from 1^st August 2022. All the returns filed on or after 1^st August 2022 have to be verified within 30 days. If the returns are not verified within the said 30 days, then the date of verification shall be considered as the date of filing the income tax returns, and interest and penalty as applicable shall be levied accordingly.

 

2.    Income Taxpayers are no longer eligible to participate in the Atal Pension Yojana

Beneficiaries of the Atal Pension Yojana receive a monthly minimum guaranteed pension ranging from Rs. 1,000/-to Rs. 5,000/-. after attaining the age of 60 years depending upon the amount of contributions made. However, with effect from 1^st October 2022, any citizen of India who is or has been an income tax payer shall be ineligible to join Atal Pension Yojana.

 

3.    Exemption of money received from employer or other people by family members of the deceased individual due to Covid-19.

CBDT vide notification no. 92/2022 dated 5^th August 2022 has exempted the money received from the employer by family members of the deceased u/s 56(2)(x) of the Income-tax Act, 1961. However, if the money is received from any other persons (other than the employer), the exemption amount shall be limited to rupees ten lakhs in aggregate. The details of the amount so received shall be furnished in Form A to the Income Tax department on or before 31^st December 2022.

 

 

4.    Exemption of amount received for Covid-19 treatment from any person.

CBDT vide notification no. 91/2022 dated 5^th August 2022 has exempted the money received by an individual from any persons, in respect of expenditure incurred by him on his medical treatment or any member of his family in respect of any illness related to Covid-19 u/s 56(2)(x) of the Income-tax Act, 1961. The details of the amount so received shall be furnished in form no 1 to the Income Tax department on or before 31^st December 2022.

 

5.    Taxability of income earned from letting of factory building along with plant and machinery therein.

The assessee has ceased business operation and leased out the Factory building as well as the plant and machinery, through separate lease deeds. In Flotherm Engineers Private Limited V/s. DCIT dated 3^rd August 2022, ITAT Chennai held that income from letting of the inseparable factory building, plant, and machinery is taxable under the head Income from Other Sources and consequently all related expenses u/s 57 (iii) are allowed.

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CA Ramakrishna Sanjay